AriseBank CEO Cryptocurrency Scam Pleads Guilty to $4 Million Investment Fraud
Even as every aspect of the crypto industry becomes more advanced and developed, so does the prosecution of crime relating to the industry. This is why there has been a sharp rise in people being arrested and prosecuted for SIM swapping, impersonation of other firms and running crypto scams.
Such is the case of AriseBank CEO Jared Rice, who has pled guilty to misleading and stealing from investors in a $4 million crypto scam. His trial is currently taking place in Texas and he is facing up to 120 Years for his actions.
The Long Arm of the Law
New details have emerged about Rice’s $4 million Scam which show just how deep his deceit of his investors went.
First, he had promised investors that his company would guarantee no-risk returns of between 10 Percent and 20 Percent. He has since plead guilty to a count of securities fraud and acknowledged that these claims were false.
He also promised investors that they would receive branded cards form Visa. In reality, Jared Rice had no affiliation or relationship with Visa and the cards never materialized.
Perhaps the most impressive claim that was made by Rice was that his companies ICO had raised over $600 million in funding. AriseBank, which had claimed to be the first decentralized banking platform, has actually only raised $4 million. On top of this, they had not been authorized to operate in the state of Texas and were not FDIC-insured as they had claimed.
This isn’t Rice’s first brush with the law as he has previously pled guilty to state felony charges for being involved in some illegal dealings regarding an Internet business.
Rice was arrested in 2018 and was subsequently charged with three counts of securities and wire fraud, and while he was initially facing up to 120 years for his crimes, it is believed that he will only likely face 20.
Fortunately for his victims, it is also like that he will need to reimburse them, though this cannot be confirmed until his July 11, 2019 sentencing.
New Crime On the Block
Rice’s guilty plea is possibly the first of its kind in the world and shows that we are entering a new phase in the maturity of the crypto market and this is likely a good thing.
There are many scams that litter both the Crypto industry and the larger financial world and this is a sign that the perpetrators will be brought to book.